(Table: IPhone and IPod Production) According to the Table OniPhone

question 85

Multiple Choice

(Table: iPhone and iPod Production) According to the table oniPhone and iPod Production, the opportunity cost of producingone iPhone is:

• A)4/3 of one iPod for Canada, and two iPods for the United States.
• B)two iPods for Canada, and four iPods for the United States.
• C)3/4 of one iPod for Canada, and one iPod for the United States.
• D)one iPod for Canada, and 3/4 of one iPod for the United States.

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Definitions:

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service.

Public Good

A product or service that is available for all to consume, regardless of who pays and who doesn't, characterized by non-excludability and non-rivalry.

Free-ride

The act of benefiting from resources, goods, or services without paying for the cost of the benefit.

Rival

In economics, a good or service is considered rival if its consumption by one individual prevents simultaneous consumption by other individuals.